What is the R&D Tax Credit?
The R&D Tax Credit is a federal tax incentive (also available in many states) designed to promote innovation. It allows companies to receive tax credits for expenses incurred for research and development, by lowering their tax obligation and increasing funds for future innovation.
Primarily a labor based incentive, the R&D Tax Credit applies to activities undertaken to develop new, improved and more reliable products, processes and formulas such as:
- Developing or testing new products or materials
- Developing new or enhanced formulations
- Testing new concepts
- Improving existing products
- Trial and error experimentation
- Designing tools, jigs, molds, and dies
- Design and analysis of prototypes or models
- Developing or improving production or manufacturing processes
- Developing, implementing or upgrading systems
- Paying outside consultants
- And more…
Thinking Beyond the Tech World
Legislation has substantially broadened the number of taxpayers eligible to benefit from the Research & Development (R&D) Tax Credit. Companies engaged in development, improvement or refinement of products, processes, formulas, and computer software may qualify.
- Aerospace
- Agriculture
- Architects
- Automotive
- Chemicals
- Electronics
- Engineering
- Food Science
- Forestry
- General Manufacturing
- Hardware Development
- Pharmaceuticals
- Semiconductors
- Software Development
- Telecommunications
- Bioengineering…and MORE
- Aerospace
- Agriculture
- Architects
- Automotive
- Chemicals
- Electronics
- Engineering
- Food Science
- Forestry
- General Manufacturing
- Hardware Development
- Pharmaceuticals
- Semiconductors
- Software Development
- Telecommunications
- Bioengineering…and MORE
On average, our clients receive a net tax credit of $60,000 per $1,000,000 of payroll.
Get More Information A free preliminary analysis can give you an idea of how the R&D Tax Credit can benefit your company. Contact us today for an Estimated Benefit and fee quote.
Something New – R&D Payroll Tax Offset
Start-up companies can use their federal R&D credit to offset their employer paid payroll taxes.
START-UP DEFINITION:
Business with less than $5 million in “gross receipts” in the credit year. In business for 5 years or less.
New Way To Monetize
Claim up to $250,000 in R$D tax credits against payroll taxes per year
R&D Money for Startups
Companies with little or no revenue can now monetize the credit they are a “qualified small business”
Here To Stay
Permanetly enacted into legislation with bi-partisan support